Time to Raise the Minimum Wage

As Texans, we pride ourselves on working hard and being self-sufficient. But too few Texans and their families earn enough to escape working poverty. Nearly 2.4 million workers, or 1 in 4 private sector employees in the state, would receive a pay increase if the state adopted a minimum wage of $10.10 per hour in 2016. That includes 400,000 Texans who make at or below the minimum wage of $7.25 per hour—more than any other state—and they all need a raise.

A full-time job paying minimum wage provides an annual income of only $15,080, which is far below the minimum needed to support an individual, let alone a family. Workers living in Austin or Houston need an income of more than $28,000 a year to meet the basic expenses of housing, food, transportation, and health care. The situation becomes even more challenging for workers trying to support a family.

The leading misconception about minimum wage workers in Texas is that most are teenagers—which couldn’t be further from the truth. Workers earning minimum wage are in their prime working years, and close to 50 percent live in households with kids. 43 percent have at least some college education, and 77 percent have a high school credential. They are important drivers of the state’s economy, working in all sectors. But they don’t earn nearly enough to get by.

Raise the minimum wage to $10.10 per hour, with certain exemptions for small businesses

Adjust the minimum wage by tying it to the consumer price index

Repeal the state law prohibiting localities from setting wage standards, and

Encourage municipalities to create local living wage standards in line with cost of living

Texas ranks among the worst states for working families, with 38 percent earning less than $47,000 per year for a family of four. In Texas we believe that hard work means self-sufficiency, but working full-time should pay more than $15,000 a year. Learn more about the benefits of raising the minimum wage in our new analysis, It’s Time to Raise the Minimum Wage in Texas.

At the Center for Public Policy Priorities, we believe in a Texas that offers everyone the chance to compete and succeed in life. We envision a Texas where everyone is healthy, well-educated, and financially secure. We want the best Texas - a proud state that sets the bar nationally by expanding opportunity for all.
CPPP is an independent public policy organization that uses data and analysis to advocate for solutions that enable Texans of all backgrounds
to reach their full potential. We dare Texas to be the best state for
hard-working people and their families.